Bin collection in Cheshire West handed back early to council

General view of waste, rubbish and recycling bins in Chester. File picture for stories relating to refuse collection etc in Cheshire West and Chester. Photo by Ian Cooper

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There are bound to be concerns council taxpayers could end up bailing out a private company.

Front line recycling service delivery staff.

In 2016 Materials Recycling World (MRW) reported Kier had suffered a £35m hit on two long-running local authority waste collection contracts, East Sussex and Cheshire West, which was blamed on market conditions for recyclable materials.

As part of the proposed arrangements with Kier, CWaC would receive a financial settlement, together with the transfer of vehicles and other assets to enable the existing service ‘to be maintained without any negative impact on residents or employees’.

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And a report before members recommends the best option is to bring the service back into local authority control through a Local Authority Trading Organisation (LATO).

Subject to cabinet approval, and the completion of negotiations, the handover would take place in April 2020.

The council says the proposal will ensure residents experience no change or disruption to the current service and that all necessary steps are taken for ‘a seamless transition’.

Cllr Karen Shore

Councillor Karen Shore, cabinet member for environment, said: “Kier approached the council with a proposal to end the current contract and we have considered all options before bringing this report before cabinet.

“Our waste collection and recycling service is incredibly successful and one of the highest performing in the country, which is in no small part down to the dedicated workforce and our residents’ commitment to recycling. Any decision taken will prioritise sustaining the high quality of service that residents are used to and ensure continuity for the staff that delivers it.

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“If approved by cabinet the transfer from Kier would not take place until April 2020, giving us plenty of time to ensure a smooth and seamless handover. Our plans ensure that residents would see no change or disruption to their service, which will be delivered by the same staff, collecting the same things, using the same vehicles, boxes and bins.”

The operating model of the Local Authority Trading Organisation will be finalised over the coming months. The council says precise arrangements will be considered by cabinet in June 2019, with the opportunity to deliver the service under cooperative principles, with the close involvement of residents and employees.

Kier

CheshireLive approached Kier for a comment before Christmas but no statement has so far been issued.

■ The council’s waste services contract’ commenced on April 1, 2012, for a term of fourteen years. The contract was awarded to May Gurney Ltd and subsequently transferred to the Kier Group, following its successful acquisition of May Gurney in 2013.

Cheshire West & Chester Council

In the past 18 months, Kier has made a corporate decision to exit the waste market. This has resulted in the early exit of its contracts with various local authorities across the UK including Bristol City Council, the Somerset Waste Partnership, and East Sussex Council. Cheshire West and Chester Council represents the only remaining large waste collection contract held by Kier.